Market Analysis Report on Global Water Soluble Fertilizers 2017

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  1. Global Water Soluble Fertilizers Report 2016-17 A complete Data driven analysis report To understand the Global water soluble fertilizers market demand,…
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  • 1. Global Water Soluble Fertilizers Report 2016-17 A complete Data driven analysis report To understand the Global water soluble fertilizers market demand, suppliers, Competitors market share, Capacity, Production, Imported quantity, F.Y Sales Company wise, Region wise, Statewise. Analysation of market potential in India. Presented By S. Kandha Hari Shankar Deputy Manager – Port Operations & Documentation, Southern Petrochemicals IndustriesCorporation Limited, SPIC House (Corporate Office) Chennai 1/9/2017
  • 2. 1 Global Water Soluble Fertilizers Market Potential Report 2016-17 Executive Summary Water soluble fertilizers are expected to witness significant demand over the next eight years as they improve crop quality and increase crop production output significantly. In addition, fertilizers protect the crops and plants from diseases and crop destroying insects including caterpillars, grasshoppers, beetles and locusts. Increasing crop production in various countries including China, India, the U.S., Indonesia, Brazil, Japan and Mexico on account of growing population is one of the major drivers for the market growth. Asia Pacific is expected to fuel demand for water soluble fertilizers over the next eight years on account of growing population in countries including China, India, Pakistan and Bangladesh. Furthermore, rapid economic growth, government support, advancements in fertilizer manufacturing coupled with increasing inclination of population towards disease free and healthy fruits & vegetables is anticipated to propel market demand. This report studies Water Soluble Fertilizers in Global market, especially in North America, Europe, China, Japan, Southeast Asia and India, focuses on top manufacturers in global market, with production, price, revenue and market share for each manufacturer, covering  Coromandel International Limited  Yara International ASA  Agrium Inc.  Haifa Chemicals Limited  Israel Chemical Limited  The Mosaic Company  Compo GmbH & Co. KG  Hebei Monband Water Soluble Fertilizer  K+S AG  Sociedad Quimica Y Minera SA (SQM)
  • 3. 2 Global Water Soluble Fertilizers Market Research Report 2016 Table of Contents 1. Global water Solublefertilizer Market Overview 2. Indian Fertilizers Market Overview 3. Segmentation of Water Soluble fertilizers Business 4. Market Volume Share 5. Product insights 6. Capacity/ Production/Consumption of Nitrogenous fertilizers 7. Capacity/ Production/Consumption of Phosphatic fertilizers 8. Micro – Nutrients Growth drivers & Industry dynamics 9. Nutrients consumption among the Asian countries 10. Global Nutrient consumption outlook 11. Pan – India consumption of Micro Nutrients 12. Introduction to CHELATION TECHNOLOGY 13. Corp Insights 14. Corp productivity comparison 15. India’s Water soluble fertilizers – Capacity/Production/Imports/ sales data 16. India’s Manufacture wise Water soluble fertilizers – Capacity/Production/Imports/ sales 17. Global N,P,K Fertilizers Market Analysis 18. Pan India company wise water soluble fertilizers present share of consumption 19. Pan India estimated water soluble fertilizers share of consumption for fy16-17 20. Water soluble fertilizers Application Movement Analysis 21. Regional Insights 22. State wise estimated consumption of water soluble fertilizers in India 23. Asia Pacific water soluble fertilizers market revenue by corp type 24. Risk & Challenges 25. Conclusion Annexures  Global Water Soluble Fertilizers Manufacturers / Suppliers Details  Global Water Soluble Fertilizers recent Imports in India
  • 4. 3 Global Water Soluble Fertilizers Market Overview  The water-soluble fertilizers market is considered to be one of the most important segments of agri-inputs, due to the expanding commercial cultivation of high value crops to meet the rising demand for food.  Water-soluble fertilizers improve the returns on investment and also aid in meeting farmers' as well as consumers' demands, from the economical and health perspective, with increasing per hectare production of quality agricultural products.  The global water-soluble fertilizers market is estimated to be valued at USD 12.24 Billion in 2017 and projected to reach USD 17.06 Billion by 2022, at a CAGR of 5.69% from 2016. With the increase in demand for food security for the growing population, along with the limited agricultural land available in the world, and rise in crop loss due to nutrient deficiency, the use of water-soluble fertilizers is expected to enhance the market growth.  The rise in urbanization, population growth, industrialization, and energy demand has augmented the conversion of cropland to other industrial and domestic uses. According to the Food and Agriculture Organization (FAO) of the United Nations (UN), developing economies including India, and China requires an additional 120 million hectares of land to fulfill the food needs of their consumers by 2030. Moreover, arable lands are also getting wasted owing to deforestation and improper agricultural practices, which is leading to a significant loss of production yield. Water-soluble fertilizers help farmers maximize production in a sustainable manner and also accelerate the growth of crops and maintain the overall health of the plants, which will impel this market’s growth in the coming years.  Over the years, practices for soil fertility management have gained prominence mainly because of loss of arable land and an upsurge in the demand for food. Soil fertility management practices involve conservation tillage, rotation of the crop, and optimal utilization of fertilizers and pesticides.  Farmers around the world are adopting soil management practices to improve the quality and quantity of agricultural production. These methods involve the use of chemicals and fertilizers for agricultural purposes. The increasing adoption of soil management practices for maintaining soil sustenance will drive this market’s growth during the forecast period.
  • 5. 4 Indian Agriculture Overview  India has 18% of world’s population but only 11% of its arable land per capita renewable water resources are well below global average levels and there is heavy reliance on monsoon.  Per hectare yield in India is amongst the lowest in the world, Compared to global average of 4 tonnes / ha the yield in India stands at 3 tonnes / ha.  To meet incremental demand of food grains, higher use of agro inputs is critical to enhance yields  Policies to encourage balanced nutrients, use of pesticides, seeds availability of water, electricity,credit and minimum support price will play a critical role.  India’s calorie and protein consumption is set to increase going forwards at a steady pace
  • 6. 5 Water Soluble Fertilizers Segmentation Water Soluble Fertilizers Nutrient Application RegionCorp Type Nitrogenous Phosphatic Potassium Micro Nutrients Secondary Nutrients Fertigation & Foliar Field Horticultural Turf & Ornamental Plantation Corps North America Europe Asia Pacific Latin America MEA
  • 7. 6 Global water soluble fertilizer market volume share, by product, 2015-16 (%) Nitrogeneous 64.24 % Micronutrients 1.56 % Potassium 15 % Phosphatic 16.2 % Secondary nutrients 3 % Product Insights:  Nitrogenous was the prominent segment in 2015-16 and accounted for 64.24% of the global volume share and is expected to witness growth on account of high application in oilseeds and grains. The product provides better texture and color to plants and thus increases the overall crop productivity. Capacity, Production & Consumption of Nitrogenous during 2014-16 (Million Tonnes) 13.533 13.533 12.435 12.467 17.024 17.02741 0 2 4 6 8 10 12 14 16 18 2015-16 2014-15 Capacity Prodcution Consumption
  • 8. 7 Capacity, Production & Consumption of Phosphatic during 2014-16 (Million Tonnes)  Potassium will witness substantial volume growth at a CAGR of 4.9% from 2016 to 2024 as it aids water retention, and protein synthesis to energize plants for healthy growth. Moreover, these are highly soluble, non-toxic to roots and improve tolerance towards frost, which will increase its consumption. Micro nutrients growth drivers & Industry dynamics: • Industry estimates the micro-nutrient market at INR 12bn or 0.4 mn tonnes p.a. • For every 100 kg of major nutrients, 45 kg of micro nutrients ideal. • Currently, this is just around 800gms in India, or 1/6th of potential size • Chelated micronutrients a profitable, but smaller market than major and hence less presence of larger players. • Changing Government Policies Moving away from subsidies would impact primary fertilizer consumption. 0 1 2 3 4 5 6 7 2015-16 2014-15 6.836 6.75 4.11 3.964 6.095 5.645 Capacity Production Consumption
  • 9. 8 • Nutrient Based Subsidy (NBS)- Subsidized fertilizers leading to underproductive fertility practices and longer term issues of soil quality, hence move to NBS a good move. With fixed subsidy, consumption of potash and phosphate has decreased. • Focus on balanced use of fertilizers with focus on sustained soil quality • Subsidized urea has led to its excessive usage, which has harmed current crop as well as long term soil quality. • Current fertilizers policy states promoting balanced nutrient application as an objective • Direct Cash Transfer gives farmers the option to buy the right fertilizer –mix • Relatively high crop prices and MSPs also support better purchasing power for the farmers • Increasing awareness-Efforts by industry players and government on providing soil- testing facilities, knowledge on soil quality and crop care will have long-term bearing on growth of micro nutrients fertilizers • However, there are local players and imports which compete largely on pricing. India’s Nutrient application rates will have to increase to improve productivity
  • 10. 9 Global Nutrient Consumption Outlook All India Consumption of Micronutrients (Tonnes) Year Zinc Sulphate Ferrus Sulphate Copper Sulphate Manganese Sulphate Borax Acid Molybdenum 2004-05 118,080 9,356 873 7,964 10,019 - 2005-06 111,573 8,303 694 5,676 6,365 855 2006-07 85,283 5,015 379 3,277 2,968 - 2007-08 110,150 6,938 1,220 4,709 7,774 - 2008-09 103,820 6,122 1,357 2,088 11,535 64 2009-10 105,594 11,541 1,286 2,201 10,444 205 2010-11 151,162 20,254 1,388 3,942 17,466 215 2011-12 161,037 21,275 1,699 4,495 20,187 209 2012-13 160,324 22,781 1,686 5,248 17,626 107 2013-14 194,406 24,633 2,921 6,064 19,567 143
  • 11. 10 CHELATION TECHNOLOGY: • Nutrients can be applied to crops in inorganic form or chelate form • 60% of inorganic compounds are wasted by leaching, fixation and due to its property of reacting easily with air, water & soil. • Chemically inert and soluble in water and easily absorbed by plants • Increase the availability of nutrients by binding relatively insoluble iron, ensuring 100% availability. • Prevent nutrients from leaching Consumption of Plant Nutrients per unit of gross cropped area in 2015 57.6 31.4 12.8 0 Consumption Nitrogeneous Phosphatic Potassic
  • 12. 11 Crop Type Insights  Field crops accounted for 64.9% of the overall volume share in 2015 as they are cultivated on a large scale to meet food requirements.  Water soluble fertilizers are integrated with irrigation systems and are directed towards the roots of plants to fulfill nutritional.  Rising demand for field crops including rice, cotton, wheat, oilseeds and other grains in countries such as the U.S., China, India and Brazil on account of growing population is expected to augment the industry demand over the upcoming years. Key Industry Highlights :  Organic (Furits & Dairy products) market to grow at a CAGR OF 13-14% & 10-11 % respectively from 2013 to 2018  Total Indian Bio input market estimated to reach US $ 37.0 billion by 2025  Approx 18 % of the crop yeild worth US $ 19.6 billion is lost due to pests every year in India 2008 2013 2018 40 55 71 Consumption & Farmers Need Consumption & Farmers Need CAGR OF 6 %
  • 13. 12 Corp Productivity Comparision : India - Water Soluble Fertilizers Capacity,Production,Import&Sale(2006-2015) Year Capacity (‘000 tonnes) Production (‘000 tonnes) Import (‘000 tonnes) Sale (‘000 tonnes) 2006-07 3,133 1,594 18,213 16,423 2007-08 6,114 2,195 38,805 30,762 2008-09 6,997 4,902 18,662 30,060 2009-10 7,143 6,870 32,373 38,132 2010-11 27,835 14,650 48,302 54,271 2011-12 47,348 20,222 62,010 69,712 2012-13 66,285 27,481 71,961 90.827 2013-14 68,447 21.778 85.560 93,905
  • 14. 13 Manufacturer wise Capacity,Production, Imports & Sale of Water Soluble Fertilizers-2014-15 S. N O Company Name Product Grade Capacity ‘000 tonnes) Production (‘000 tonnes) Imports (‘000 tonnes) Sale (‘000 tonnes) 1 Coromandel International Ltd – Vizag & Kakinada NPK 19-19- 19,20-20- 20,13-40- 13 15,000 3,925 - 2,834 Other NPK 4,500 1,729 - 1,372 2 Zuari Rotem Speciality Fertilizers ltd, Baramati NPK 19-19-19 13-40-13 20-20-20 12,000 2,513 - 202 3 Zuari Agro Chemicals ltd NPK & Others 15.5-0-0- 18.8 13-0-45 0-52-34 12-61-0 0-0-50 - - 4765 4100 4 Everest Fertilizers & Chemicals Pvt ltd, Rajkot NPK 19-19-19 500 12 12 5 Gujarat State Fertilizers & Chemicals ltd NPK & Others 19-19-19 13-0-45 0-52-34 12-61-0- 0-0-50 3000 625 425 562 6 Indian Farmers Fertilizers Cooperative ltd, Kandla NPK & Others 18-18-18 0-0-50 6000 3436 1993 3670 7 Mangalore Chemicals & Fertilizers Ltd NPK & Others 19-19-19 13-40-13 13-0-45 0-52-34 0-0-50 12-61-0 2947 2947 7082 9466 8 Rashtriya NPK 19-19-19 8000 3860 - 3307
  • 15. 14 Chemicals & Fertilizers Ltd 12-61-0 13-0-45 0-0-5 9 Chambal Fertilizers & Chemicals ltd NPK & Others 19-19-19 13-0-45 0-52-34 12-61-0 0-0-50 15.5-0-0- 18.8 124 92 10 Chakradhar Chemicals pvt ltd NPK & Others 15.50-0- 18.8 0-52-34 12-61-0 1243 1056 11 Deepak Fertilizers & Petro Chemicals Corporation ltd NPK & Others 19-19-19 12-61-0 0-52-34 13-0-45 0-0-50 15.5-0-0- 18.8 13-40-13 17014 16033 12 Nagarjuna Fertilizers & Chemicals ltd NPK & Others 19-19-19 12-61-0 0-52-34 13-0-45 0-0-50 15.5-0-0- 18.8 13-40-13 15510 11240 13 Paradeep Phosphates ltd NPK & Others 19-19-19 0-52-34 0-0-50 13-0-45 12-61-0 761 761 14 PR Agro Nutri pvt ltd NPK & Others 19-19-19 12-61-0 0-52-34 13-0-45 0-0-50 15.5-0-0- 18.8 13-40-13 3128 2927 15 Shriram Fertilizers NPK & Others 19-19-19 12-61-0 9368 9021
  • 16. 15 &Chemicals 0-52-34 13-0-45 0-0-50 15.5-0-0- 18.8 13-40-13 16 Tata Chemicals ltd NPK & Others 19-19-19 12-61-0 0-52-34 13-0-45 0-0-50 15.5-0-0- 18.8 13-40-13 2947 2947 17 Solufeed Plant Products & Service pvt ltd NPK & Others 19-19-19 12-61-0 0-52-34 13-0-45 0-0-50 13-40-13 594 62 Global N,P,K Fertilizer Market 2016-17
  • 17. 16 Pan India Present Share of Important Grades of Water Soluble Fertilizers in Total Consumption
  • 18. 17 Pan India Estimated Share of Important Grades of Water Soluble Fertilizers in Total Consumption Water Soluble Fertilizers Market Application Movement Analysis 10.80% 3.10% 11.20% 11.50% 11.90%19.20% 26.90% 5.40% Estimated share in India MKP Urea Phosphate Potassium Nitrate SOP MAP Calcium Nitrate 19-19-19 Other Grades 69.60% 98.50% 30.40% 60.20% 0.00% 50.00% 100.00% 150.00% 200.00% 2015 2024 Fertigation Foilar
  • 19. 18  Foliar accounted for 30.4% of the overall volume and will show steady growth in light of rising application in various fruits & vegetables including tomatoes, beans, and melons. However, high cost as compared to fertigation will pose a challenge to its growth.  During 2015, the fertigation segment dominated the market and accounted for close to 69.60% of the market shares in terms of revenue.  Fertigation water and nutrients quickly enter the active zone of the root resulting in superior absorption by crops Regional Insights  Asia Pacific accounted for 22.6% of the overall revenue in 2015 and is projected to increase demand for water soluble fertilizers over the next eight years on account of growing agricultural output in countries including China, India, Pakistan, and Bangladesh.  Development of medium to small scale market participants in the region coupled with rapid economic growth and government support is expected to drive the market growth. India :  The market of water soluble fertilizers in India stood at 110,000 mt in volume terms, during 2014-15 and is projected to witness strong growth over the next five years  The country’s Western region, comprising Maharashtra and Gujarat, holds largest share in terms of WSF consumption as soil in this region contains high clay level, which makes it difficult for cultivation  The market is largely organized with the presence of various established players such as Zuari Agro, Deepak Fertilizers, Nagarjuna Fertilizers and Coromandel International. Several other players such as Aries Agro, IFFCO and Gujarat State Fertilizers and Chemicals are also seeking to establish their footprint in the market and capitalize on growth opportunities available in the country. China:  China leads in the production of rice followed by India and Indonesia.  China accounts for more than a quarter of global rice production.  Furthermore, production of fruits and plantation crops such as tea and coffee are very popular in China.  Presence of the main fertilizer manufacturers including Sinofert Holdings Limited, EuroChem, Bunge, and Agrium Inc. will increase industry expansion.
  • 20. 19 Europe:  Europe accounted for 37.6% of the overall revenue share in 2015  It expected to witness significant gains in light of rising food security concern owing to growing population along with high export demand for food products including wheat and cereals from Germany, France, Italy and UK. Moreover, the presence of key participants including Yara International, Bunge Ltd., Agrium, Eurochem, Potash Corp, and CF Industries will promote industry growth. North America:  North America market has been pegged at $3,626.9m in the year 2015 growing at 5.5% annually and is projected to reach $4,739.7m by the end of the year 2018.  Its constitute 31.7% of Global Water Soluble Fertilizers market and are poised to grow its market share to 32.0% by the end of year 2018. State Wise Estimated Consumption of Water Soluble Fertilizers 2016-17 S. No State / Groups Consumption (Tonnes) Fertigation Foliar Total 1 Maharashtra 32,000 9,000 41,000 2 Karnataka 14000 6000 20000 3 Andhra Pradesh 10000 5000 15000 4 Gujarat 6000 4000 10000 5 Rajasthan 1500 1500 3000 6 Madhya Pradesh & Chhattisgarh 4000 3000 7000 7 Uttar Pradesh & Uttarkhand 1000 6000 7000 8 Bihar/ Jharkhand & West Bengal 200 1300 1500 9 Punjab & Haryana 1500 4500 6000 10 Jammu & Kashmir 100 900 1000 11 North east 400 4100 4500 12 Tamil Nadu & Kerala 10000 4000 14000 Total 80,700 49,300 1,30,000
  • 21. 20 Asia Pacific water soluble fertilizer market revenue, by crop type, 2013 - 2024 (USD Million) Risk &Challenges:  Poor monsoon : Stronger focus on developing cash crop markets and horticulture crops during Rabi, since water availability is known before Rabi season
  • 22. 21  Power deficiency leading to unavailability and increased power cost : Re-orienting our product and market mix towards states with surplus power  Imports is in forex :  Almost 67% of our Imports is in forex  Forex gain in the first six months of FY16 is INR 0.61Cr  Volatile Exchange Rate:  Un expected depreciation of Chinese Yuan renminbi 2016  Monetary tightening by US in 2016  Demonetization by Govt of India in 2016
  • 23. 22 Conclusion:  The Specialty fertilizers market are small but growing faster than the commodity market  Irrigated area in India is has been steadily increasing
  • 24. 23  Cropping intensity has also steadily increased  Long term demand drivers remain
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